(stock code: 01883) - citic telecom international€¦ · 14-08-2019 · 25/f, citic telecom...
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Copyright © CITIC Telecom 2019. All rights reserved 1
2019Interim ResultsAnnouncement
14 August 2019
2019Interim ResultsAnnouncement
14 August 2019
(Stock Code: 01883)(Stock Code: 01883)
Copyright © CITIC Telecom 2019. All rights reserved 2
1 Results Summary
2 Financial Performance
3 Operational Performance
Copyright © CITIC Telecom 2019. All rights reserved 3
2019 Interim Results Summary
Profit attributable toequity shareholders
↑4.6%
Interim dividends
↑25.0%
Revenue fromtelecommunications
services
↑2.7% Revenue from telecommunications services (i.e. excluding equipment and mobile
handsets sales) for the period increased by 2.7% to HK$3,615.3 million whencompared with the first half of 2018. Revenue decreased by 11.0% to HK$4,375.2million when compared with the first half of 2018 mainly due to the decline in mobilehandset sales
Profit attributable to equity shareholders of the Company amounted to HK$511.1million, an increase of 4.6% when compared with the first half of 2018
Interim dividend of HK5.0 cents (2018 Interim dividend: HK4.0 cents), a 25% year-on-year increase
Copyright © CITIC Telecom 2019. All rights reserved 4
1 Results Summary
2 Financial Performance
3 Operational Performance
Copyright © CITIC Telecom 2019. All rights reserved 5
Financial results overviewTotal revenue and telecommunications
services revenueProfit attributable to equity
shareholders
HK$ Million HK$ Million
Telecommunications services revenue
Copyright © CITIC Telecom 2019. All rights reserved 6
EBITDA, Capital Expenditure & Liquidity
* EBITDA represents earnings before interest, taxes, depreciation and amortisation@ Includes current and non-current bank and other borrowings^ Comparatives were amended to conform to the presentation of current period# Net gearing ratio = Net debt / (Total Equity Attributable to Equity Shareholders + Net Debt) X 100%
HK$ Million
2018
1,049.1
6,857.5
5,808.4
40%
1,080.6
125.2
EBITDA*
Capital Expenditure
For the six months ended 30 June
At 30 JuneHK$ Million
Cash and bank deposits
Total debt@^
Net debt ^
Net gearing ratio#^
2019
1,251.1
153.8
1,164.7
6,579.4
5,414.7
38%
At 31 December
Copyright © CITIC Telecom 2019. All rights reserved 7
1 Results Summary
2 Financial Performance
3 Operational Performance
Copyright © CITIC Telecom 2019. All rights reserved 8
Revenue by Business SegmentsGrowth in majority of major businesses
HK$ Million
3,615.3
Revenue decreased by 11.0% to HK$4,375.2 million when compared with the first half of 2018. Revenue fromtelecommunications services increased by 2.7% to HK$3,615.3 million when compared with the first half of 2018.
-11.0%
+2.7%
3,520.7
45.5%
8.3%
3.7%
0.5%
0.2% 4.6%
Copyright © CITIC Telecom 2019. All rights reserved 9
Revenue – Mobile Sales & Services Revenue from mobile sales and services decreased by 31.5% year-on-year to
HK$1,376.5 million mainly due to the decline in mobile handsets sales
Continuous growth in revenue from mobile services was mainly attributable to
the increase in outbound and inbound roaming and postpaid revenue
resulting from the popularity of the services and products in the Guangdong-
Hong Kong-Macau Greater Bay Area
As at 30 June 2019, share of the Macau mobile market and 4G market reached
approximately 42.9% and around 44.5% respectively, thus maintaining its
leading market position
The Group has completed the construction plan for its 5G network. It intends
to launch 5G services in Macau in 2020, at the same pace with peripheral areas.
The Group is ready to provide 5G cross-border roaming services to operators
Mobile Sales & ServicesContinuous growth in revenue from services; well prepared for 5G services
Share of Macaumobile market
42.9%
Share of Macau 4Gmarket
44.5%
HK$ Million-31.5%
+0.2%
4G customerpenetration rate
98.5%
Copyright © CITIC Telecom 2019. All rights reserved 10
Internet ServicesRevenue rose driven by fibre broadband and data centre services
Revenue – Internet Services
Internet market sharein Macau
96.8%
Fibrelisation rate ofresidential broadband
89%
Fibrelisation rate ofcommercial broadband
~100%
+8.3%
Revenue from Internet services increased by 8.3% when compared to the first
half of 2018 to HK$529.9 million, mainly due to the increase in revenue from
fibre broadband and data centre services
The Group’s share of the Macau Internet market was approximately 96.8%, thus
maintaining its lead in the market
Leveraging on its full fibre coverage, the Group continued to increase the
weighting of fibre network for home and business broadband service customers
in Macau. As at 30 June 2019, fibrelisation rate of commercial broadband users
was near 100%, while that of residential customers rose further to 89%
Data Centre Phase 3 (A) at CITIC Telecom Tower has been launched. Phase 3 (B)
is expected to be launched to the market in 2H2020
HK$ Million
Copyright © CITIC Telecom 2019. All rights reserved 11
Revenue increased by 3.7% to HK$1,515.9 million
The Group further expanded its VPN coverage. TrueCONNECT, our exclusive VPN,
covered over 140 network service spots around the world. It has established coverage
advantage along the Belt and Road, and enabled access to more public cloud platforms
The Group constantly improved its IT capabilities; its services have transformed from
network access to comprehensive ICT services including connectivity, Cloud computing,
information security and disaster recovery
Further ICT resources were devoted to the Guangdong-Hong Kong-Macau Greater Bay
Area, where services such as co-location, Cloud computing, MPLSVPN and Internet,
together with 100 Mbps to 10Gbps high-speed Ethernet broadband, disaster recovery,
network security, etc, were in place
Integration of CT and IT services in Southeast Asia – High-end Cloud computing
platform business had undergone healthy development in Southeast Asia, as evidence
by the ongoing expansion of coverage of the “Pacific Internet” brand
Enterprise SolutionsExpanded coverage, stronger capabilities, rising revenue
Revenue — Enterprise Solutions
↑3.7%Global PoPs
140+Cloud computing platform
18
+3.7%
+3.5%
+4.5%
HK$ Million
Enterprise solutions revenue
Copyright © CITIC Telecom 2019. All rights reserved 12
International Telecommunications ServicesA2P messaging businesses deliver rapid growth, while “DataMall 自由行” productsupgrade to 4G
Revenue — International Telecommunications Services
Messaging revenue
+0.5%
+49.3%
-10.7%
Revenue from international telecommunications services increased by 0.5%
when compared to the first half of 2018 to HK$838.4 million
The Group enjoyed a leading position in the market for Internet-based SMS
business, and the A2P SMS business maintained a strong growth
momentum, leading to notable increase of 49.3% in overall messaging
revenue
“DataMall 自由行”, the Group’s internet-based mobile roaming data trading
platform, was updated to offer 4G services while the deployment of eSIM
service was completed, laying a solid foundation for the expansion of
business scale and grabbing the advance opportunities for 5G international
roaming business
Achieved encouraging progress in the development of its Internet-based
business system which has commenced to support part of its Internet-based
business operations
↑ 49.3%
HK$ Million
DataMall 自由行
4G
Copyright © CITIC Telecom 2019. All rights reserved 13
Fixed Line ServicesUsage and revenue continued to drop, echoing global trend
Revenue - Fixed Line Services
-4.6%
Revenue from fixed line services declined by 4.6% to HK$114.5
million. This was mainly due to the ongoing decline in revenue,
including from fixed line rental and IDD, which is consistent with
the overall trend of the global industry.
HK$ Million
Copyright © CITIC Telecom 2019. All rights reserved 14
Early strategic plan for 5G to grasp opportunity
In Sept 2018, the success of commencement of CTM 5G networktesting was announced
In 2019, the construction plan for 5G network has completed and 5Gservices in Macau will be launched in 2020, at the same pace withperipheral areas
In Mar 2019, a collaboration agreement of 5G mobile technology hasbeen signed with University of Macau
At 17 May 2019, the Group successfully made the first 5G call in Macau
Based on the sufficient network facilities in Macau, the Group willcomplete 5G network construction in fast speed and in a cost-effectiveway
In Apr 2019, the Group joined the 5G International
Cooperation Alliance with many other renowned international
operators and digital service providers, aiming to explore 5G
roaming industry cooperation model and work hand in hand
to help the development of the 5G roaming industry chain
The Group is ready to provide 5G cross-border roaming
services to operators
5G Network Construction in Macau 5G Roaming Services Preparation
Copyright © CITIC Telecom 2019. All rights reserved 15
Bearing fruits from technological innovation and product R&D Strategy of technological innovation and product R&D – Collaborative innovation
strategy for advancing R&D and for reaching out to partners
Over 200 R&D employees
Co-organized “CTM x Tencent TENNOVATION” in April 2019 , solutions involved AI, Big Data
and Cloud service were demonstrated
Further expanded TrueCONNECT™ Hybrid Software Defined Wide Area Network (SD-WAN)
solution in May 2019, elevating the professionally managed hybrid infrastructure solution to a
new level of innovation
Announced plans in Jun 2019 to join forces with the Hong Kong Applied Science and
Technology Research Institute Company Limited (ASTRI) on research and development for
next-generation operations and maintenance technologies using Augmented Reality (AR)
glasses
The Group is ready for 5G roaming, eSIM platform and others
Zhuhai R&D Centre
CTM x Tencent TENNOVATION
Copyright © CITIC Telecom 2019. All rights reserved 16
Q&A
Copyright © CITIC Telecom 2019. All rights reserved 17
“Listed Company Awards of Excellence - Main Board” 2018 -- 《Hong Kong EconomicJournal》“ Most Valuable TMT Stocks Company” awards at the “2018 Golden Hong Kong StocksAwards” -- zhitongcaijing,10jqka“ Outstanding ICT Solution Provider 2018” -- Quamnet“ Most Trusted Service Partner Award 2019” -- China Unicom“ 2018 Excellence Innovation Award in ICT Solution Market (China)” -- Frost & Sullivan“Cloud Infrastructure Award” at the “Asia Communication Awards 2018” -- Total Telecom“Top 10 Data Center (Consulting/ Implementation)” 2018 -- APAC CIO Outlook“ Best Managed Services Provider” awards at the “Telecom Asia Awards 2018” -- TelecomAsia“2018 Business Excellence Awards” -- Acquisition International“Hong Kong Awards for Environmental Excellence Silver Award” -- Hong Kong ProductivityCouncil……
Industry Recognitions
CITIC Telecom International Holdings Limited25/F, CITIC Telecom Tower, 93 Kwai Fuk Rd, Hong Kong
Email:[email protected]
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